Novel uses for Reverse Mortgages
A reverse mortgage Is available to anyone 62 years of age or older. It is essentially an equity loan which does not have to be paid back. With a reverse mortgage you receive an amount equal to maximum of about 50% of the appraised value of your home less any existing mortgage. This can be a lump sum, monthly payments, or left as line of credit. There are no payments necessary until either the house is sold or the passing away of the owner.
Most reverse mortgages are taken out by people who need the money to live on in their retirement years. There are however alternative reasons which may be attractive for a RV.
With interest rates on RV’s relatively low it is possible to take the money and put into any number of investment vehicles, such as, Corporate bonds or dividend paying stocks which have a yield of as much as 4 points more than the cost of the RV. Thus giving you “found money.”
Other uses for a RV can be to buy a house for your children or as an investment property where the rent is enough to cover the interest plus any mortgage payment.
Of course you must do due diligence and buy only relatively safe securities.
Lastly if you do not have a reason to maximize your legacy you can simply use the RV to better enjoy your later years.
